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Economist warns government shutdown could help spur recession

Stephen Fuller says the shutdown is causing uncertainty and giving Washington a bad reputation.

Some people are already feeling the affects of the shutdown, and they're not just federal workers and contractors.  

Some business deals are being cancelled and tens of thousands of furloughed workers are holding back on spending.   

A leading economist said if the shutdown continues, it could help spur a recession.

RELATED: Government shutdown: The growing list of everything affected

The ripple affect is wide in the Washington region. Reston Limousine now based in Sterling, Va. just lost some major business from a Chinese company that was planning to use their charter service on business trip there. COO Tony Simon said they cancelled because of the shutdown. 

"We had a delegation coming in from out of the country to be here for ten days to visit multiple government agencies. They had to cancel the work...We've lost tens of thousands of dollars," said Simon. 

Simon said since January is a slow month, losing business is especially tough. Some of the work they've lost is from government contracts.

Only 5 percent of Reston Limousine's  business is government contracts. They're a big enough company that they'll be able to withstand the loss of business, but the longer the shutdown goes on, the more all kinds of businesses will be affected.

One of the leading experts on the Washington area's economy is worried about the long term affects of this partial shutdown.

RELATED: VERIFY: Here's a timeline of previous government shutdowns in the US

"It gives the Washington area a bad reputation," said Dr. Stephen Fuller, head of George Mason University's Schar School of Policy and Government and the Stephen S. Fuller Institute.  

He said the shutdown is causing uncertainty and uncertainty is the friction the economy doesn't like.

"These kinds of actions can precipitate a recessions, not a deep one, or that we'd worry about too much...And it isn't just the shutdown. It's the uncertainly, the lack of leadership, the policy, conflicts coming out of the White House, the trade wars,There's a long list of actions that are weakening the economy use destroy weakening the economy when we should've had a good ride in 2019," said Fuller. 

Fuller said he's not that hopeful things will change with the new Congress, because he anticipates more conflict and more uncertainty.

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